Romanian economy "will grow with 1,4% in 2012"

The European Commission estimates that the Romanian economy will have a growth of 1.4% this year, close to the estimation announced by the IMF, according to Radio Romania Actualitati correspondent, Carmen Valică.

Economic predictions presented Friday shows that this year will be a moderate increase, helped primarily by the domestic demand.

"Romania's prospects are good, with a "solid growth, based on domestic demand and better spending of European money yet this year' increase", said the Monetary Affairs Commissioner Olli Rehn.

The increase for 2011 was higher than expected due to the good results in industry and agriculture.

Regarding Europe, estimates show that a positive outlook is looming, but the way to have a sustainable growth is a "long and difficult” one.

According to Radio Romania Actualitati editor Alex Olaru, early this year, the Commission announced stagnation in 2012, with a period of re-entry of euro area in recession, followed at the end of the year, a shy growth.

Prediction of early this year, less optimistic

Specialists in Brussels predicted that the gross domestic product of the Union, overall, will remain constant, while the euro area will fall by 0.3%.

There have been extended interim economic predictions, with brought up to date indicators for all the Member States, which happened for the first time.

Portugal and Greece are expecting the largest decrease in GDP of over 3percent.

Meanwhile, austerity and strict control of expenditure and deficits seem to have brought many Europeans to exasperation, condition which influenced election results, whether presidential, in France, or legislative, in Greece.

In France, the new president, the socialist Francois Hollande, has pestered during his campaign regarding the European Fiscal Pact renegotiation .

The pact, which requires budgetary discipline is not renegotiating – the European Commission President Jose Manuel Barroso immediately replied, being quoted by "Le Figaro" –a message similar to the President of Parliament, Martin Schulz.

Another is the situation in Greece, where extremist parties, both left and right, have unexpected scores.

Athens is already at the third attempt to form a government and instills concerns about respecting their commitments.

Finally, within this context, Brussels has noticed that the time is appropriate for implementation of the measures of economic growth.

It is time - said José Manuel Barroso - for Member States should proceed with the facts provided that budgetary discipline should not be ignored.

After today's time follows, at the end of the month, individual recommendations which the European Commission gives after assessing all national plans for reform.

Translated by Ioana Vioreanu
MTTLC, Bucharest University